A private developer has saved the RNLI hundreds of thousands of pounds with his plans to convert Tenby's old lifeboat station into a four-bedroomed home.

Last year, Cardiff businessman Tim O'Donovan was given planning permission for his scheme to transform the red-roofed listed building, off Castle Hill, into the unique property.

Although the seaside structure had been surplus to requirements since Tenby's new £5.5.million boathouse came into use in 2005, the RNLI was left footing the bill to maintain it after plans to demolish it were turned down.

Now the century-old lifeboat house has been formally handed over to Mr O'Donovan, who is the boss of civil engineering company Horan, who has obtained the freehold from the Cown Estates Commissioners.

He was named as the preferred developer after a marketing exercise was launched to find a suitable new owner for the building whose scheme would attract the backing of the Pembrokeshire Coast National park Authority.

Howard Richings, the RNLI's head of estates management, explained that the charity had been left in an 'incredibly frustrating' position when the decision of planners to refuse demolition was upheld by Welsh built heritage guardians Cadw.

 "We could not justify ploughing funds into maintaining it," he said.

" We are thrilled to have found someone willing to take the liability for this building off our hands which will mean supporters' money now goes into its rightful place – saving lives at sea.

"Had no alternative use been found. then the RNLI would have had to pay several hundreds of thousands of pounds for the demolition of the old boathouse. We wish the developer all the very best with this new venture and thank all those in Tenby who have supported us during this very protracted process.'